WGU D550 ETHICS AND AUDITOR RESPONSIBILITIES EXAM REVIEW UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

WGU D550 ETHICS AND AUDITOR RESPONSIBILITIES
EXAM REVIEW UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question:
1. What step of ethical decision making has the CPA completed when realizing a client omitted liabilities?
Answer:
Ethical sensitivity

Question:
2. Which ethical theory focuses on producing the greatest good for the greatest number?
Answer:
Utilitarianism

Question:
3. Which ethical theory best applies when a CPA refuses to manipulate earnings due to honesty?
Answer:
Virtue ethics

Question:
4. What is it called when someone follows the majority despite believing it is wrong?
Answer:
Groupthink

Question:
5. What illustrates obedience to authority in an ethical scenario?
Answer:
An employee complying with a manager's pressure to ignore an accounting error

Question:
6. What does ethical motivation mean?
Answer:
Choosing ethics over personal gain

Question:
7. Which ethical theory emphasizes protecting individual rights?
Answer:
Rights theory

Question:
8. Which ethical theory focuses primarily on fairness?
Answer:
Justice

, Question:
9. What is making several small unethical decisions until they become major violations called?
Answer:
Incrementalism

Question:
10. What comes immediately after recognizing an ethical issue?
Answer:
Gather facts

Question:
11. What is the primary responsibility of a CPA?
Answer:
Serve the public interest

Question:
12. What does integrity mean in the context of CPA ethics?
Answer:
Being honest

Question:
13. What does objectivity require?
Answer:
Avoiding bias

Question:
14. Which principle requires professional competence?
Answer:
Due Care

Question:
15. What independence threat exists if a CPA owns stock in an audit client?
Answer:
Self-interest

Question:
16. What threat is created by reviewing work you originally prepared?
Answer:
Self-review

Question:
17. What does being pressured by management to issue a clean opinion represent?
Answer:
Intimidation